Palo Alto Networks – a Silicon Valley cybersecurity firm has reportedly announced that it will acquire the cloud security startup Redlock for $173 million. Supposedly, the acquisition would be reinforcing Palo Alto Networks’ leadership position in cloud security.
Reports confirm that some of the early funders of the auto threat detection software development company included tech giants such as Dell Technologies Capital. The firm has over 6,000 customers including some prominent industry names, such as VMWare.
According to an official press release, the company will be acquiring Redlock by making an all cash transaction of $173 million. The acquisition activities are anticipated to reach completion during the first fiscal quarter of Palo Alto Networks and would be subject to the fulfilment of customary closing conditions.
An analyst from Techmarketview – a UK-based analyst & advisory firm reportedly stated that this acquisition is quite significant considering the rapidly growing volume of data and applications both private and public sector firms transport off-premise. This is apparently done to satisfy the companies’ digital transformation and cost optimization requirements.
Credible sources claim that in all probability, the acquisition by Palo Alto Networks is primarily targeting Redlock’s flagship Cloud360 compliance assurance software. Although one of the key challenges faced by Palo Alto would be integrating that software into its own lineup.
Redlock had issued a statement, according to which its fast analytics can detect suspicious access even when hackers attempt to access the cloud service through a legitimate key that a developer could have accidently leaked on a renowned online repository like GitHub.
Emphasizing the importance of this acquisition, Palo Alto Networks had in its statement said Redlock would be bringing critical security analytics capabilities, that span across a multi-cloud environment, to the company’s extensive cloud security offering. Redlock co-founders – Gaurav Kumar and Varun Badhwar are slated to join Palo Alto Networks after the deal is completed.